Packaging Two Health Insurance Policies Can Lower High Deductibles

This year, many individuals shopping for health insurance are worried about the costs, specifically the high deductibles and premiums. Though not well-known, there is actually a solution to help combat high costs. Many smart agents are proposing two products rather than one to help lower premiums and deductibles. This may seem counterintuitive– buying more to save more– but rest assured, there is a method to the madness. In the video below, David Russell, a sales expert for life and health insurance, explains why two products are oftentimes better than one. Check it out!

Problem: High Deductibles

Based on many clients’ situations, an agent may deem two products appropriate rather than one policy, which may confuse clients. For the individual health insurance marketplace (under 65), for example, an agent may recommend two products – a qualified plan plus some supplemental coverage. While this may seem like a waste of money, it’s actually a way to invest your money wisely.

Since most people don’t have an in-depth knowledge of the insurance industry, they’re just focused on buying a health insurance plan that’s self-contained, and an average agent could sell them what they’re looking for. However, once the client looks through that plan, they’ll quickly recognize the several high out-of-pocket costs. So if something happens to them, they could end up having to pay $7,000 for the deductible on the health insurance plan. While the plan may have a low premium, it leaves them open to high out-of-pocket expenses. So even though the plan is affordable month to month, it’s not actually affordable to use when you need it.

Solution: Packaging a Qualified Plan with a Gap Plan

Fortunately, high out-of-pocket costs can be covered for as little as a dollar a day, or $30-$40 per month. Though the cost is important, the plan itself is critical. Does it cover the client’s needs? Many supplemental gap plans provide coverage for accidents, hospitalization, and critical illnesses. To explain, if you have a $5,000 deductible on your qualified health plan, you can purchase a $5,000 accident plan to protect you in the event you have a car accident; your deductible would go from $5,000 to $0.

Therefore, you can purchase the cheapest qualified health plan, such as the bronze package (which means a low premium), and then the high deductible would be covered by the gap plan. So if someone is diagnosed with a major illness, has an accident, or is hospitalized, supplement insurance helps cover the costs. This is a smart way to buy your health insurance because you can end up with better coverage at a lower price, which is really what people want in today’s market.

Clients should also be aware that this packaged plan is not a life sentence. You don’t have to pay for this forever. It’s just for the next twelve months. Because plans change year to year, it’s important to do a policy review with your agent. On that note, contact an Empower agent today!

Have Health Insurance Questions?

We hope that this information on deductibles is helpful for you.

Insurance is oftentimes overwhelming, and we want to shed light on the industry by answering your questions. Comment below and your question may be the topic of our next post!

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Empower Brokerage wants to help you find the insurance coverage you need and help you save money getting it.  Stay on top of your health and give us a call at (844) 410-1320.

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